DEXUS - Annual Report 2020 | FinancialReports.eu

Dexus (ASX: DXS)

ASX release

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19 August 2020

2020 Annual results presentation and property synopsis

Dexus provides its 2020 Annual Results Presentation.

An investor conference call will be webcast at 9.30am today on www.dexus.com/investor-centre

The 2020 property synopsis excel workbook is also available at www.dexus.com

Authorised by the Board of Dexus Funds Management Limited

For further information please contact:

Investors

Jessica Johns Senior Manager, Investor Relations +61 2 9017 1368 +61 427 706 994 [email protected]

Media

Louise Murray Senior Manager, Corporate Communications +61 2 9017 1446 +61 403 260 754 [email protected]

About Dexus

Dexus is one of Australia’s leading real estate groups, managing a high-quality Australian property portfolio valued at $32.0 billion. We believe that the strength and quality of our relationships is central to our success and are deeply committed to working with our customers to provide spaces that engage and inspire. We invest only in Australia and directly own $16.5 billion of properties, with a further $15.5 billion of properties managed on behalf of third-party clients. The group’s $10.6 billion development pipeline provides the opportunity to grow both portfolios and enhance future returns. With 1.8 million square metres of office workspace across 51 properties, we are Australia’s preferred office partner. Dexus is a Top 50 entity by market capitalisation listed on the Australian Securities Exchange (trading code: DXS) and is supported by 29,000 investors from 21 countries. With over 35 years of expertise in property investment, development and asset management, we have a proven track record in capital and risk management, providing service excellence to tenants and delivering superior risk-adjusted returns for investors. www.dexus.com

Dexus Funds Management Ltd ABN 24 060 920 783, AFSL 238163, as Responsible Entity for Dexus (ASX: DXS) Level 25, 264 George Street, Sydney NSW 2000

Annual Results Presentation 2020

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Positioning for the recovery

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A summary of Dexus’s operational and financial performance.

2020 Annual Results 19 August 2020

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Dexus Funds Management Limited
ABN 24 060 920 783
AFSL 238163 as responsible entity for Dexus
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Agenda

Overview

Financial results

Darren Steinberg - CEO

Alison Harrop - CFO

Office portfolio performance Kevin George - EGM, Office Funds management Deborah Coakley - EGM, Funds Management

Industrial portfolio performance Stewart Hutcheon - EGM, Industrial, Retail and Healthcare

Development and investments Ross Du Vernet - CIO

Summary Darren Steinberg - CEO

Appendices

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80 Collins Street, Melbourne
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2 Dexus 2020 Annual Results Presentation

Resilient result

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A year of progress despite COVID-19 impact on financial result

� Strengthened funds management platform Enhanced financial strength Reinforced underlying portfolio value via divestments Delivered distribution per security in line with FY19 Progressed pipeline of growth opportunities � � � �	50.3 cents Distribution per security	50.3 cents Distribution per security	98% FY20 Dexus portfolio rent collections	98% FY20 Dexus portfolio rent collections
	24.3% Gearing (look-through)1		$1.6 billion Liquidity (cash + undrawn debt)
	circa $955 million equity raised for new and existing funds
	Central Place Sydney progressed to Stage 3 of USP2 process	60 Collins Street, Melbourne project received development approval		Waterfront Brisbane, received state government support and development plans lodged
	Garema Court, Canberra divestment3	201 Elizabeth Street, Sydney settlement of divestment of initial 25% interest(trading asset)		45 Clarence Street, Sydney divestment4 announced in late June 2020 at pre-COVID-19 value
Underpinned by highly engaged workforce reflected in employee NPS score5 of +61
1. Adjusted for cash and debt in equity accounted investments. Proforma gearing includes proceeds and payments for transactions post 30 June 2020 that are expected to settle before 30 September 2020 including the divestment of Finlay Crisp Centre, Canberra, 201 Elizabeth Street, Sydney and 45 Clarence Street, Sydney (subject to FIRB approval), the acquisition of Edward Street, Brisbane (Hermes), payment of Dexus’s share of deferred settlement amounts for 80 Collins Street, Melbourne, the industrial property acquisitions of 37-39 Wentworth Street, Greenacre and the Ford Facility at Merrifield Business Park, Mickleham. All other transactions post 30 June 2020 are excluded. Look-through gearing at 30 June 2020 was 26.3%. 2. Unsolicited Proposal. 3. Settled February 2020. Sold at 30 June 2019 book value. 4. Conditional exchange of contracts, subject to FIRB approval. Sold at 31 December 2019 book value. 5. Average employee Net Promoter Score over the year.

Dexus 2020 Annual Results Presentation

Strategic progress

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FY20 achievements aligned to strategy

Vision To be globally recognised as Australia’s leading real estate company To deliver superior risk-adjusted returns for investors Strategy from high-quality real estate in Australia’s major cities Leadership in office - - Dexus and group office portfolio outperforming Strategic PCA/MSCI benchmark[1] over 1, 3 and 5 years - objectives - Maintained high office portfolio occupancy of 96.5% - - Achieved customer NPS[2] of +50, up from +46 in FY19 - Progressed planning of city-shaping developments

Wholesale partner of choice

Expanded existing relationship to establish new office JV
Increased partner’s investment in Dexus Australian Logistics Trust and delivered on acquisition and development mandate
All funds performing with Dexus Wholesale Property Fund continuing its outperformance and Healthcare Wholesale Property Fund achieving a 10.9% one-year total return

Commitment to ESG demonstrated through:

Achieving 2020 NABERS Energy and NABERS Water targets set in 2015
Expanding use of climate scenario analysis to enhance Dexus’s resilience Maintained strong balance sheet
Period to 31 March 2020 which reflects the latest available PCA/MSCI Australia Annual Property Index.
The Net Promoter Score (NPS) is calculated as the difference between the percentage of Promoters and Detractors and is for the Office and Industrial portfolio. The NPS is not expressed as a percentage but as an absolute number between -100 and +100. Dexus 2020 Annual Results Presentation

Financial results

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5 Dexus 2020 Annual Results Presentation
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MLC Centre – Artist impression
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Key earnings drivers and valuations

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Values demonstrate resilience in uncertain times

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Key earnings drivers
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Earnings driver FY20 result
Property Property AFFO [1] of $615.9 million
portfolio +2.4% office LFL income growth [2]
FFO of $71.5 million – comprising
Funds earnings from funds management,
management property and development
management
Trading profits of $35.3 million [3] from
sale of initial 25% interest in
Trading
201 Elizabeth Street, Sydney and
share of North Shore Health Hub
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AFFO contribution is calculated before finance costs, group corporate costs and tax. Property AFFO is equal to Property FFO of $795.6 million less total portfolio AFFO capex of $179.7 million.
LFL income growth was +4.7% excluding rent relief and provision for expected credit losses.

Property portfolio valuations

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30 June 2020 Valuation Capitalisation rate
value [4] movement [5] 30 June 2020 12 month movement
Total Total FY20 +$612.4m +3.9%
portfolio $16.5bn Jun 2020 $(112.0)m (0.7)% 5.05% -c.1.5% 21bps
Dec 2019 +$724.4m +4.6%
Office Total FY20 + $490.6m +3.1%
portfolio $14.2bn Jun 2020 $(131.7)m (0.8)% 4.97% 18bps
Dec 2019 +$622.3m +4.0%
Total FY20 +$111.4m +0.7%
Industrial
$2.2bn Jun 2020 +22.6m +0.1% 5.66% 26bps
portfolio Dec 2019 $88.8m +0.6%
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Outlook: Expect quality asset values to remain resilient with some impact from softer assumptions relating to rental growth, incentives and downtime

Net of tax.
Total portfolio FUM of $16.5 billion made up of office portfolio $14.2 billion, industrial portfolio $2.2 billion and healthcare portfolio $0.1 billion.
Total portfolio includes healthcare and leased assets revaluation gain of $10.4 million.

6 Dexus 2020 Annual Results Presentation

FY20 financial results

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AFFO and distribution per security consistent with prior year

Office property FFO growth driven by fixed rental increases, development completions, and the acquisitions of 80 Collins and MLC Centre partly offset by rent relief

	FY20 $m	FY19 $m	Change %	-	Office property FFOgrowth driven by fixed rental increases, develo completions, and the acquisitions of 80 Collins and MLC Centre partl	Office property FFOgrowth driven by fixed rental increases, develo completions, and the acquisitions of 80 Collins and MLC Centre partl
Office property FFO Industrial property FFO	671.4 124.2	610.5 137.3	10.0% 9.5%	-	by rent relief Industrial property FFOreduced due to the divestment of the secon tranche of the DALT portfolio and rent relief, partly offset by fixed ren
Total property FFO	795.6	747.8	6.4%		increases
Management operations1	71.5	54.6	31.0%	-	Management operationsincreased due to new funds, acquisitions
Group corporate	(33.0)	(30.2)	9.3%		development completions as	well as non-recurring cost savings
Net finance costs	(127.4)	(117.1)	8.8%	-	Finance costsincreased primarily due to cessation of capitalising int
Other2	(11.8)	(8.3)	42.2%		at key development projects
Underlying FFO3	694.9	646.8	7.4%		Key per security metrics	FY20 FY19 Change
Trading profits (net of tax)	35.3	34.7	1.7%		Underlying FFO per security3	63.5 cents 62.9 cents 1.0%
FFO	730.2	681.5	7.1%		FFO per security	66.7 cents 66.3 cents 0.6%
Adjusted Funds from Operations (AFFO)	550.5	517.2	6.4%		AFFO per security	50.3 cents 50.3 cents -
Distribution payout (% AFFO)	100.0%	98.7%4			Distribution per security	50.3 cents 50.2 cents 0.2%
Distribution	550.3	529.0	4.0%		Net Tangible Assets per security	$10.86 $10.48 3.6%

Industrial property FFO reduced due to the divestment of the second tranche of the DALT portfolio and rent relief, partly offset by fixed rental increases
Management operations increased due to new funds, acquisitions and development completions as well as non-recurring cost savings
Finance costs increased primarily due to cessation of capitalising interest at key development projects
Management operations FFO includes development management fees.
Other FFO includes non-trading related tax expense and other miscellaneous items.
Underlying FFO excludes trading profits net of tax.
FY19 distribution payout ratio was adjusted to exclude the $18.3 million of distributions paid on new securities issued through the Institutional Placement and Security Purchase Plan announced on 2 May 2019, which were fully entitled to the distribution for the six months ending 30 June 2019. The distribution payout ratio was 102.3% including this amount.

Dexus 2020 Annual Results Presentation

COVID-19 impacts

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Strong rent collections for FY20

Rent collections and rent relief

Rent relief measures are consistent with the Code of Conduct and set of principles introduced in April 2020
Strong focus on cash collection while ensuring the sustainability of our SME customer base
Continue to work with our customers on rent relief requests and at this time, have reached in principle agreement on 37% of rent relief requests received[1]

	Rent collections2 Office Industrial City retail Total
	4th quarter FY20 94% 92% 39% 92% Total FY20 98% 98% 75% 98%

	FY20 direct COVID-19 AFFO impacts3 Est. Rent Waivers Provisions Total
	Office $12.3m $4.1m $16.4m Industrial $4.2m $1.7m $5.9m City retail $2.7m $1.0m $3.7m Total $19.2m $6.8m $26.0m

FY20 rent relief impacts are estimates as an immaterial number of agreements were executed at 30 June 2020. Refer slide 42. 2. Dexus share at 13 August 2020.

COVID-19 impact on FY20 distribution per security

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rent relief &
provisions
pre-COVID guidance DPS growth c.+5.5% -4.7% or $(26)m
COVID-19 impacts -6.6%
Cost savings non-recurring +2.1%
Other -0.8%
Actual DPS growth +0.2%
FY20 cash collections
($984m) ($964m)
$20m ($7m) ($7m) $6m
100%Billed Collected(98%) 2 Outstanding2% Est RentWaivers4 Provisions Net
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Estimated rent waivers for tenants in arrears at 30 June 2020 of $7.4 million. Estimated rent waivers for tenants not in arrears of $11.8 million.
Estimated rent waivers and provisions at 30 June 2020. Refer slide 42.
Dexus 2020 Annual Results Presentation

9 Dexus 2020 Annual Results Presentation

Strong financial position

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Enhanced liquidity, sourcing more than $1.8 billion of debt funding

Accessed diverse debt markets to increase liquidity
Issued $700 million of Medium-Term Notes with 10 and 12-year tenors at attractive rates – Arranged bank debt facilities totalling more than $1.1 billion with weighted average tenor of 5.2 years

- Maintained low gearing

Activated on-market securities buy-back in October 2019, purchasing 5.7 million securities prior to onset of COVID-19 market volatility
Divested properties during the year, enhancing liquidity and funding flexibility

Key metrics	30 June 2020	30 June 2019
Gearing (look-through)1	24.3%2	24.0%
Headroom3	$1.6bn	$1.0bn
Cost of debt4	3.4%	4.0%
Duration of debt Hedged debt (incl caps)5	6.9 years 78%	6.7 years 74%
S&P/Moody’s credit rating	A-/A3	A-/A3

Adjusted for cash and debt in equity accounted investments.
Proforma gearing includes proceeds and payments for transactions post 30 June 2020 that are expected to settle before 30 September 2020 including the divestment of Finlay Crisp Centre, Canberra, 201 Elizabeth Street, Sydney and 45 Clarence Street, Sydney (subject to FIRB approval), the acquisition of Edward Street, Brisbane (Hermes), payment of Dexus’s share of deferred settlement amounts for 80 Collins Street, Melbourne, the industrial property acquisitions of 37-39 Wentworth Street, Greenacre and the Ford Facility at Merrifield Business Park, Mickleham. All other transactions post 30 June 2020 are excluded. Look-through gearing at 30 June 2020 was 26.3%.

Diversified sources of debt

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Exchangeable
Notes 7%
144A 5%
Bank Facilities
38%
Debt capital
USPP 27% markets 62%
Bank debt 38%
Commercial
MTN 21% Paper 2%
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Undrawn facilities plus cash.
Weighted average for the year, inclusive of fees and margins on a drawn basis. 5. Average for the year. Hedged debt (excluding caps) was 55% for the 12 months to 30 June 2019 and 62% for the 12 months to 30 June 2020.

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Office portfolio
performance
10 Dexus 2020 Annual Results Presentation 12 Creek Street, Brisbane.
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COVID-19 response

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Assisting in returning Australian businesses safely to their workplaces

Working to provide rent relief to SME customer base, consistent with Code of Conduct, and finalise agreements with those most impacted
Continue to maintain a focus on the health, safety and wellbeing of employees, customers and people in our buildings
Engaged an independent health expert to review processes for end-of-trip facilities, bike storage rooms, lifts and lobbies, food courts and bathrooms to enable re-opening
Taken proactive steps at properties to deliver COVID-safe environments in line with government guidelines, implementing measures to prevent the spread of the pandemic including:
Increased cleaning in high-touch points
Touchless sanitiser stations in office lobbies
Prominent signage advising physical distancing requirements
Regulating lift occupancy and people traffic management in lobbies
Additional cleaning packages for individual tenancies

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11 Dexus 2020 Annual Results Presentation

Office portfolio metrics

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High occupancy retained through FY20

Portfolio snapshot

$23.3 billion Dexus group office portfolio value

$14.2 billion Dexus office portfolio value

properties

1.6 million square metres

Leasing by area[1]

Occupancy

96.5%

88,467sqm

FY19: 98.0% WALE[2]

Average incentives[1]

17.1% 4.2 years FY19: 13.4% FY19: 4.4 years

Sydney CBD leasing spread[1]

Effective LFL income

Excluding rent relief and +2.4 % provision for expected credit losses effective Face: +1.0% LFL growth was +4.7%

14.6%

Customer NPS[4]

Portfolio one-year total return[3]

+50 FY19: +46 FY13: +4

7.5%

at 30 June 2020

Dexus office portfolio vs PCA/MSCI office index At 31 March 2020[5]

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% p.a.
16%
14% 12.6% 12.8% 13.8% 13.6% 12.7% 14.0% 14.1% 13.3%
12% 11.2%
10%
8%
6%
4%
2%
0%
1 year 3 years 5 years
Dexus office portfolio Dexus Group office portfolio PCA/MSCI Office Index
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Dexus office portfolio outperforming over 1, 3 and 5 years
Excluding development leasing of 26,403 square metres. 2. By Income.
Portfolio unlevered total return for 12 months to 30 June 2020.
The Net Promoter Score (NPS) is calculated as the difference between the percentage of Promoters and Detractors and is for Office and Industrial portfolio. The NPS is not expressed as a percentage but as an absolute number between -100 and +100.
Period to 31 March 2020 which reflects the latest available PCA/MSCI Australia Annual Property Index.

Dexus 2020 Annual Results Presentation

Office portfolio expiry profile

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Dexus portfolio occupancy consistently above market

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Dexus office portfolio lease expiry profile Historic Dexus occupancy vs market consistently above market, Dexus occupancy rates
100% underpinned by high-quality portfolio
25% Sydney Melbourne Other Dexus [1]
96%
20%
14.8%
15% 13% target threshold 12.2% 12.2% 12.0% 92%
Market
9.7%
10%
88%
5% 3.5% 9.1% 8.7% 9.3% 8.0% Sydney CBD.
5.0%
2.5%
0% 84%
Available FY21 FY22 FY23 FY24 FY25 1999 2001 2003 2005 2007 2009 2011 2013 2015 2017 2020
FY21 Key expiries FY22 Key expiries FY23 Key expiries FY24 Key expiries
80 Collins St, North (1.7%) 123 Albert St (3.6%) Gvnr. Phillip Tower (1.5%) Grosvenor Place (2.3%)
385 Bourke St (0.7%) 383-395 Kent St (1.2%) Australia Square (0.9%) 100 Harris St (1.4%)
Grosvenor Pl (0.7%) 44 Market St (0.9%) MLC Centre (0.7%) MLC Centre (1.3%)
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Source: JLL, Dexus information.

Represents Dexus Office Trust until 2003 and includes acquisition of CPA from 2014 onwards.

13 Dexus 2020 Annual Results Presentation

The workplace and its role in business productivity Culture, collaboration and innovation

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Culture
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Enhances the establishment of human
connection, shared experiences, and the
transfer of learned behaviours
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72%
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of executives[1] believe that building culture is more effectively done in the office environment

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Collaboration
Increases employee engagement, improves
attraction and retention of talent and supports
higher productivity
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79%

of employees[2] found collaboration with their team to be easier in the office than working from home

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Innovation
Development of new products, processes, and
ways of working to improve competitive
positioning
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66%

of employees[3] found sharing of ideas and brainstorming more difficult to do remotely

Dexus tenant C-Suite survey with 153 respondents (June 2020).
BatesSmart Survey with >1,000 respondents (May 2020).
Dexus tenant employee survey with 1,095 respondents (April 2020).

14 Dexus 2020 Annual Results Presentation

Dexus continues to build its customer offering Delivering flexibility and a seamless experience

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Workspace solutions from 1 hour to 10 years
Traditional spaces Fitted spaces Flexible spaces Meeting spaces
7 years+ 2 years+ 6 months + 1 hour+
Dominant portfolio offering. Fully fitted out suites with SuiteX provides high quality Dexus Place provides meeting, video
Customer demand expected shorter lease terms. Targeted workspace that enables conferencing and training facilities
to remain, however, customer at reducing the pain points companies to remain agile that facilitate cost effective
requirements for flexibility will associated with real estate while having access to turn-key interaction and collaboration across
continue to evolve over time. occupation for SMEs. solutions to support growth. physical and virtual environments.
We will continue to work with our customers on the future of workspace
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Dexus 2020 Annual Results Presentation

Office market outlook

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In a softer market prime assets usually benefit from a ‘flight to quality’

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Prime assets benefit from a ‘flight to quality’
(net absorption, sqm)
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Sydney
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Melbourne

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Grade Tech-wreck ‘02-05’ GFC ‘09-12’
Prime +128,253 sqm +78,509 sqm
Secondary -221,994 sqm -65,217 sqm
Sydney CBD net absorption FY96-FY20 Prime assets have persistently
outperformed, including
200,000250,000 “Tech- wreck ” “GFC” in crisis periods –94% of Dexus office grade [1] represents Prime
portfolio
150,000
100,000
50,000
0
-50,000
-100,000
-150,000 Prime
-200,000 Seco ndary
Jun-96 Jun-99 Jun-02 Jun-05 Jun-08 Jun-11 Jun-14 Jun-17 Jun-20
Source: JLL, company information.
1. Stabilised assets only. Excludes development-affected assets and land.
Dexus 2020 Annual Results Presentation
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Prime office vacancy below 10Prime office vacancy at 7.5% due to year average at 7.0% new supply
- Lull in demand due to weaker - Demand impacted by extended confidence during pandemic COVID-19 lockdown
12-month outlook Vacancy Effective Rents Incentives Perth

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12-month outlook
Vacancy
Effective Rents
Incentives
Brisbane
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Prime office vacancy at 11.0% is lower than total vacancy of 12.8%
Prime office vacancy at 15.3% is lower than total vacancy of 20.1%
- Low levels of supply
Positive prime net absorption in FY20

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12-month outlook
Vacancy
Effective Rents
Incentives
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12-month outlook
Vacancy
Effective Rents
Incentives
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Funds
management
17 Dexus 2020 Annual Results Presentation
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Funds Management

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Platform of specialist capability underpinned by scale benefits

Funds Management business provides Dexus with an annuity-style income
Dexus co-investments provide alignment of interest to capital partners
Acquisitions, developments and revaluations contributed to uplift in FFO from management operations
Diverse third party capital sources and objectives, enhancing ability to execute on opportunities and strategy through the cycle

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Diversified Funds Management platform [1]
DACT
DALT $0.6bn
$0.9bn
HWPF DWPF Funds Management portfolio composition
$0.4bn $10.3bn
$9.1bn $2.7bn
Dexus Office Industrial
Industrial
Partner$0.2bn $15.5bn
$3.3bn $0.4bn
Retail Healthcare
Dexus Office
Partner
$2.7bn
Australian Industrial Partner
$0.4bn
circa $955 million 77 7
FY20 new equity Investor relationships Vehicles
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Excluding Dexus’s share.

18 Dexus 2020 Annual Results Presentation

Dexus Wholesale Property Fund

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Market leading diversified wholesale fund delivering outperformance

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Key features DWPF portfolio diversification DWPF outperformance against Benchmark [1]
- Prime quality diversified Australian property FY20 vs FY17
portfolio with a track record of Industrial
outperformance [1] 11% (was 10%) Office 56% 10.2% 10.0%
(was 44%) 8.6%
- Broad diversification across sector, 7.5% 8.1%
geography and asset concentration
Retail 5.3%
- Conservative gearing with access to 33%
diverse funding sources (was 46%)
- GRESB [2] Global Sector Leader for diversified
office/retail entities (listed and unlisted)
-0.9%
FY20 -2.7%
FUM [4]
Future focus $10.3bn new equity 1 Year 3 Years 5 Years 10 Years
c $240m
- Total development pipeline of $1.9 billion [3] DWPF Benchmark
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MSCI/Mercer Australia Core Wholesale Monthly Property Fund Index (net returns, net asset weighted).
Global Real Estate Sustainability Benchmark.
Third party share of project cost.
Funds under management.
Dexus 2020 Annual Results Presentation

Healthcare Wholesale Property Fund

Providing unlisted exposure to a growing asset class

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Key features HWPF portfolio composition [1]
- Completed significant development, College Junction Calvary
Calvary Adelaide Hospital 6% Adelaide
Hospital
- Secured North Shore Health Hub which is North Shore 54%
targeting a 5 star Green Star design rating Health Hub
34%
- Portfolio WALE of 27.0 years and weighted
average capitalisation rate of 5.30%
- One-year return of 10.9% to 30 June 2020 GP Plus Health
and return since inception of 9.2% Care Centre6%
FUM [2] FY20
Future focus
$654m new equity
– Execution of identified pipeline +72% from $80m
acquisitions to increase portfolio to 30 Jun-19
>$1 billion on completion value
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Total portfolio value including North Shore Health Hub as if complete at 30 June 2020 and College Junction Brisbane acquisition announced post 30 June 2020. 2. Funds under management at 30 June 2020, including North Shore Health Hub ‘as if complete’ valuation and pro rata adjustment for College Junction (expected to settle in November 2020).

20 Dexus 2020 Annual Results Presentation

80 Collins Street, Melbourne

Accelerating opportunities to expand platform Focused across property sectors

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Executing on growth initiatives
DALT
Dexus Australian Logistics Trust
$1.05bn FUM [1] $2.7bn FUM [2]
– Increased investment from partner +69% from $615m FUM [2] +8% from
and delivered on investment 30 Jun-19 New mandate 30 Jun-19
strategy
– Post 30 June 2020, entered into
agreements to acquire eight DACT DOTA
quality industrial properties in
Sydney and Melbourne Dexus Australian Commercial Trust Dexus Office Partnership
Future focus
– Active acquisition mandate with – Dexus partnered with existing third – Outperformance against benchmark over one, three
$250 million development pipeline [3] party capital partner to establish new and five years [4]
office JV
DITA – Acquired 50% interest in Rialto Towers,
Dexus Industrial Partnership $217m FUM [2] Future focus525 Collins Street, Melbourne Future focus
Future focus +7% from – Leveraging platform to drive – Partner with Dexus for key future city-shaping office
30 Jun-19
– Active acquisition mandate performance of iconic Melbourne tower developments comprising a circa $2.9 billion
pipeline [3]
Future focus - launch unlisted opportunity fund series
1. Funds under management based on gross realisation of developments, excluding Dexus share. 3. Third party share of project cost.
2. Funds under management excluding Dexus share. 4. Property return as at 31 March 2020. Benchmark MSCI Australian Quarterly Digest for Office Sector.
21 Dexus 2020 Annual Results Presentation
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Industrial portfolio performance

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22 Dexus 2020 Annual Results Presentation
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Foundation at Truganina
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Industrial portfolio metrics

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Strength in logistics and online drive result

Portfolio snapshot

$5.0 billion[1] Dexus group industrial portfolio value

$2.2 billion Dexus portfolio value

69 properties

1.5 million square metres

Dexus industrial portfolio vs PCA/MSCI industrial Index At 31 March 2020[4]

Occupancy

Leasing by area

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% p.a.
181,472sqmAverage incentives WALE95.6%FY19: 97.0% [2] 14%16%12% 13.2% 14.0% 11.3% 13.6% 13.8% 11.8% 13.7% 13.7% 12.1%
10%
13.4% 4.1 years 8%
FY19: 11.7% FY19: 4.7 years 6%
4%
Effective LFL income
2%
Excluding one-off impacts 0%
-2.1% provision for expected credit in addition to rent relief and 1 year 3 years 5 years
Face: +2.5% losses effective Dexus industrial portfolio Dexus Group industrial portfolio PCA/MSCI Industrial Index
LFL growth was +0.1%
Portfolio o ne-year
total return [3] - Dexus industrial portfolio outperforming over 1, 3 and 5 years
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11.8% at 30 June 2020

Including acquisitions post 30 June 2020 (on completion value).
By income.
Portfolio unlevered total return for 12 months to 30 June 2020.
Period to 31 March 2020 which reflects the latest available PCA/MSCI Australia Annual Property Index. Dexus 2020 Annual Results Presentation

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Developments
and
investments
24 Dexus 2020 Annual Results Presentation
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Central Place Sydney - Artist’s impression
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A busy year of development completions

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$1.1 billion completed across 198,000 square metres[1]

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100% 96% 94% 24%
leased leased leased [3] leased
7 Custom Place [2] , Truganina, VIC
100%
leased
Calvary Adelaide Hospital, SA 240 St Georges Terrace, Perth, WA 80 Collins Street, Melbourne, VIC [4] The Annex, 12 Creek Street, Brisbane, QLD
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Represents 100% project cost and area.
Council changed name from 12A Felstead Drive, Truganina.
Combined % leased for 80 Collins Street office and retail.
80 Collins Street, Melbourne was acquired as a fund-through development. Office and retail achieved Interim Completion on 1 July 2020, the hotel is under construction.
Dexus 2020 Annual Results Presentation

$10.6 billion group development pipeline Minimal current commitments

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Committed $1.0bn (Dexus share $0.5bn)
circa 3% of balance sheet FUM [1 ] (of 15% limit)
Key projects
180 Flinders Street, Melbourne North Shore Health Hub
MLC retail + theatre, Sydney Ravenhall
circa $180m remaining spend until end FY22 [3]
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Uncommitted and concept $9.6bn (Dexus share $4.9bn)
City-shaping projects $6.7bn [2 ]
Other key projects
(Dexus share $3.7bn)
Waterfront Brisbane Central Place Sydney Ward Street, North Sydney 140 George Street, Parramatta
Pitt & Bridge Precinct, Sydney 60 Collins Street, Melbourne Axxess Corporate Park, Carillon, Perth
Mount Waverley
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Minimal upfront capital to retain optionality, longer-dated and income producing

Project cost for committed developments and trading projects as a proportion of balance sheet FUM at 30 June 2020.
Group share in project cost (including cost of land where purchased for development and excludes downtime and income earned through development). 3. Dexus share.

26 Dexus 2020 Annual Results Presentation

CBD office development

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Portfolio of city-shaping projects – progressed during the year

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Waterfront Brisbane Sydney
$2.2 billion expected project cost
Uncommitted
Dexus 50%, DWPF 50%
Central Place Sydney
c.$1.1 billion [1] expected project cost
Uncommitted
Dexus 25%, Dexus Office Partner 25%
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Brisbane
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Melbourne
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Sydney
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Pitt & Bridge Precinct, Sydney
c.$2.8 billion expected project cost
Uncommitted
Dexus 50%, Dexus Office Partner 50%
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60 Collins Street, Melbourne $0.6 billion expected project cost Uncommitted Dexus 100%

Excluding external party share of project, cost of land already owned, downtime and income earned through development.

Dexus 2020 Annual Results Presentation

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Core industrial development

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Progressing key projects
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22%
Freeman Central, leased
425-479 Freeman Road,
Richlands
$0.8bn Underway - $84 million
Industrial pipeline Dexus 51%
Dexus Australian Logistics Partner 49%
45%
$0.4bn leased
Committed Brisbane
Loop,
54 Ferndell Street,
South Granville
$0.4bn Underway - $150 million
Dexus 51%
Uncommitted Sydney Dexus Australian Logistics Partner 49% Artist’s impression
54%
leased [1]
circa $0.9bn Melbourne
End value
Horizon 3023
circa $500mTo contributeto 11-167 Palm Springs Road,
third party FUM Ravenhall
Build out to 2025
1. Combined % leased for Lot 15 and Lots 20 & 21, 11-167 Palm Springs, Ravenhall (committed). Dexus 25.5%
28 Dexus 2020 Annual Results Presentation Dexus Australian Logistics Partner 24.5%
DWPF 50%
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Capital allocation and future funding options 95.5% of the portfolio AUM is income producing

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Capital allocation at 30 June 2020

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95.5% of portfolio
AUM is income
producing C D
B
$16.7bn
Dexus property
portfolio AUM [1]
(adjusted)
A
A – Core assets $14.4bn (86%)
Income producing
B – Future development and trading sites$1.5bn (9%)
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C – Committed developments and trading $0.6bn (4%)
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D – Spend to complete $0.2bn (1%)
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Development pipeline

Dexus has a $10.6 billion development pipeline of city-shaping projects

$5.4 billion balance sheet / $5.2 billion third party

A range of considerations for Dexus when sourcing funding:

Third party capital - Divesting interests in future development projects to existing and new partners
Divestments – Recycling capital
Timing of spend – Projects longer-dated with optionality around timing
Capital management – Low leverage and supportive headroom
Dexus Assets under Management of $16.5 billion plus remaining committed development and trading spend of $0.2 billion.

29 Dexus 2020 Annual Results Presentation

Optimise property portfolio composition

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Focus on selective asset recycling, leveraging track record to maximise value

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Circa $6.6 billion in asset sales [1] from FY15
Post
FY15 FY16 FY17 FY18 FY19 FY20 30 June
2020
$933m $1.1bn $706m $408m $2.1bn $1.0bn $269m
79% 85% 62% 62% 95% 100% 51%
DXS share DXS share DXS share DXS share DXS share DXS share DXS share
Focus on selective asset recycling to optimise the composition of the portfolio for the recovery,
enabling Dexus to drive stronger investor returns over the next decade
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1. Asset sales announced or exchanged during the period across the group including 45 Clarence Street, Sydney (subject to FIRB approval) and trading asset sales.
Dexus 2020 Annual Results Presentation
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Trading business

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FY21 and FY22 trading profits de-risked

–

Delivered $35.3 million (net of tax) of FY20 trading profits

– Circa $85 million (pre-tax) trading profits secured over FY21 and FY22[1]

Trading projects	Trading projects	FY20
201 Elizabeth Street, Sydney2 Office Rezoning and development North Shore Health Hub, 12 Frederick Street, St Leonards – Stage 13 Industrial Healthcare development Truganina (Laverton) properties4, 5 Industrial Development Lakes Business Park South, Botany5 Industrial Development 436-484 Victoria Road, Gladesville Industrial Rezoning 12 Frederick Street, St Leonards – Stage 2 Industrial Healthcare development		�
		�




�	Contracted trading profits Trading profits yet to be secured Realised trading profits

Focus on activating 12 Frederick Street, St Leonards Stage 2 development and replenishing the pipeline

Including contribution from 201 Elizabeth Street, Sydney, North Shore Health Hub, 12 Frederick Street, St Leonards – Stage 1, Truganina properties and Lakes Business Park South, Botany. 2. 201 Elizabeth Street, Sydney transferred to trading book in May 2018. During FY20, Dexus sold a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest. Dexus exercised this put option in July 2020 for a further $157.5 million.
During FY20, Dexus sold the North Shore Health Hub on a fund-through basis to HWPF and continues to manage the development, with trading profits realised across FY20 and FY21, with the amount for each financial year dependent on the progress of the development and leasing.
Share of Truganina (Laverton) lots which sit in inventory. 5. Post 30 June 2020, Dexus contracted to sell six trading assets to DALT, which are expected to realise circa $35 million of trading profits (pre-tax) in FY21 and FY22 (in the event the options are exercised). Dexus has exchanged contracts to sell the first tranche of the portfolio in October 2020 and entered into put and call option arrangements to sell the second tranche in mid-2021.

Dexus 2020 Annual Results Presentation

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Summary
32 Dexus 2020 Annual Results Presentation
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Well positioned for the recovery

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High-quality portfolio, growing funds business and strong capital position

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High-quality earnings streams Expanding Funds Management business
FFO composition [1] Stabilised office portfolio [2] Third party FUM Number of wholesale investors
Funds/Trading Secondary +$9.9bn +19
6%
12% $15.5bn 77
Industrial 14% 58
$5.6bn
74% 94%
Office Prime
FY12 FY20 FY12 FY20
Diverse asset backed income Underpinned by Expanding funds Supported by expanding base
with active earnings exposure high-quality office portfolio management offering of wholesale partners
Committed to conservative approach to capital management
24.3% 6.9 years $1.6 billion
Gearing (look-through) [3] Debt duration Cash and undrawn facilities
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Funds From Operations (FFO) is calculated before finance costs, group corporate costs and other (including tax). 2. Stabilised assets only. Excludes development-affected assets and land.
Adjusted for cash and debt in equity accounted investments. Proforma gearing includes proceeds and payments for transactions post 30 June 2020 that are expected to settle before 30 September 2020 including the divestment of Finlay Crisp Centre, Canberra, 201 Elizabeth Street, Sydney and 45 Clarence Street, Sydney (subject to FIRB approval), the acquisition of Edward Street, Brisbane (Hermes), payment of Dexus’s share of deferred settlement amounts for 80 Collins Street, Melbourne, the industrial property acquisitions of 37-39 Wentworth Street, Greenacre and the Ford Facility at Merrifield Business Park, Mickleham. All other transactions post 30 June 2020 are excluded. Look-through gearing at 30 June 2020 was 26.3%.

Dexus 2020 Annual Results Presentation

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Offices will remain relevant

Office markets are driven by employment growth

Office buildings will continue to have a core role to play for business in the development of culture, collaboration and innovation
Despite Australia currently being in recession, office demand is expected to continue to increase over the long term

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100 Mount Street, North Sydney.
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Over the past decade office markets have been driven by solid employment growth
Around 5,000 white collar jobs have been added to the Sydney CBD every year over the past decade and 38,400 jobs across broader Sydney[1]
Employment growth will resume post COVID-19

Expect a continued evolution of workspace trends

Deloitte Access Economics.

34 Dexus 2020 Annual Results Presentation

Summary

Immediate priorities

1 Assist in returning Australian businesses safely to their workplaces
2 Optimise property portfolio composition
3 Accelerate opportunities to expand funds management platform
4 Continue working with our customers on the future of workspace
5 Progress city-shaping development pipeline

Dexus intends to deliver a distribution in line with free cash flow in FY21. However, taking into account the continued uncertainty, we are not providing distribution per security guidance for the 12 months ended 30 June 2021.

35 Dexus 2020 Annual Results Presentation

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Appendices

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36 Dexus 2020 Annual Results Presentation
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Dexus today
$32.0 billion total funds under management
Dexus portfolio Funds Management portfolio
Healthcare
$0.4bn
Healthcare
$0.1bn Office
$14.2bn Office Rialto Towers, 525 Collins Street, Melbourne.
$9.1bn
Retail
$3.3bn
$16.5bn $15.5bn
Industrial
$2.2bn
Industrial
$2.7bn
Dexus 2020 Annual Results Presentation Rialto Towers, 525 Collins Street Melbourne.
100 Mount Street, North Sydney.
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Dexus today

$32.0 billion total funds under management

37 Dexus 2020 Annual Results Presentation

Embedded value

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Across key earnings drivers

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-
Property Short-term Low bond yields and attractive spreads of property yields over bond
portfolio yields to support real estate investment demand
-
$16.5 billion value Medium to Optimise property portfolio composition and recycle capital
$10.86 NTA [1] long-term - Future portfolio value supported by ownership in CBDs and benefiting
per security from the urban density and cities megatrend
+
-
Built in organic growth in existing and new funds
Short-term
-
Demonstrated ability to attract new third party capital partners to
Funds
invest alongside
management Medium to - Accelerating opportunities to expand the funds platform
long-term - Focus on launch of unlisted opportunity fund series
+
Trading Short-term - FY21 and FY22 trading profits de-risked [3]
Circa $85m trading
profitsFY21 and FY22 [2] secured over Medium to long-term - Focus on activating 12 Frederick Street, St Leonards Stage 2
development and replenishing the pipeline
Capital management
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Embedded value in
$10.6 billion
Development group development
+ (core) pipeline with
minimal current
commitments
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Maintain diverse sources of capital and a strong balance sheet

Net tangible asset backing.
Pre-tax.
During FY20, Dexus sold a 25% interest in 201 Elizabeth Street, Sydney for $157.5 million and entered into a put and call option to sell the remaining 25% interest. Dexus exercised the put option in July 2020 for a further $157.5 million. During FY20, Dexus also sold the North Shore Health Hub on a fund-through basis to HWPF and will continue to manage the development, with trading profits realised across FY20 and and FY21, with the amount for each financial year dependent on the progress of the development and leasing. Post 30 June 2020, Dexus contracted to sell six trading assets to Dexus Australian Logistics Trust which are expected to realise circa $35 million of trading profits (pre-tax) in FY21 and FY22 (in the event the options are exercised). Dexus has exchanged contracts to sell the first tranche of the portfolio in October 2020 and entered into put and call options to sell the second tranche in mid-2021.

Dexus 2020 Annual Results Presentation

Delivering sustained value

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Track record of delivering superior risk-adjusted returns

Dexus distribution per security

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cents 5.8%
CAGR [1]
55 FY12-FY20
50.2 50.3
50 47.8
45.47
45 43.51
41.04
40 37.56
36.00
35
32.10
30
25
20
FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
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Compound Annual Growth Rate (CAGR) is calculated over eight years. Adjusted for the one-for-six security consolidation in FY15.

39 Dexus 2020 Annual Results Presentation

Cities are a key element of our strategy Dexus is an investment in Australian cities

CBDs are shown to be more productive than suburban markets[1]
Concentration of activity drives innovation and collaboration
CBDs will continue to benefit from new infrastructure investment (e.g. metro rail)
CBDs benefit from transport connections and access to a large professional workforce

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All of Australia’s major cities are ranked in the top 20 most liveable cities globally (Melbourne #2, Sydney #3)[2]

Dexus does not believe COVID-19 will shift the ongoing megatrend of urbanisation

Mapping Australia’s Economy, Grattan Institute (2014).
Economist Intelligence Unit 2019 Report. 40 Dexus 2020 Annual Results Presentation

100 Mount Street, North Sydney.

The role of the office

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Building culture, collaboration, innovation and more

1. THE POWER OF PLACE

UPSKILLING CBD locations have been proven to be the most productive for knowledge 70% of learning comes from experiences[3] including informal industries, with companies benefitting from clustering together and being able on-the-job learning. This is particularly important for new to attract the best talent. starters, graduates and junior staff 2. COLLABORATION 6. CAREER PROGRESSION Businesses with a collaborative strategy are twice as likely There is a saying, “out of sight, out of mind”. Employees to outgrow their competitors. 79%[1] of employees found perceive that being physically present in the office face to face collaboration to be easier than working from makes it easier to spot career opportunities and home. increases their chances of promotion 3. INNOVATION 7. SOCIAL INTERACTION The most innovative companies in the world actively Interacting with your peers and colleagues is a key collaborate and cross-pollinate beyond their organisations reason for coming into the office. It is fun and adds a in person, rather than remotely. dimension to your social life, allowing you to build a network. 4. BUILDING CULTURE 8. WELLBEING 72% of executives[2] believe that building culture is preferably done Working in an office with other people reduces loneliness and face to face. The culture of a business is enhanced by people mental health issues arising from working at home alone. working together and from learned behaviours.
BatesSmart Survey with >1,000 respondents (May 2020).
Dexus tenant C-Suite survey with 153 respondents (June 2020).
70-20-10 model for learning and development purported by Michael Lombardo and Robert Eichinger.

Dexus 2020 Annual Results Presentation

FY20 rent relief treatment

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FY20 rent waivers $19 million impact on AFFO

Rent relief is provided in the form of rent waivers or rent deferrals
FY20 rent relief amounts are estimates[1]
Estimated rent waivers impact AFFO in the period they relate to
Estimated rent waivers only impact statutory profit once an agreement is executed, or prior to execution if a provision for expected credit losses is raised against debtors for tenants in arrears. If a tenant is not in arrears, a provision cannot be raised for estimated rent waivers
Once an agreement is executed, the rent relief will be straight-lined over the remaining term of the lease from that date, except to the extent there is a pre-existing provision for expected credit losses

provision for expected credit losses	provision for expected credit losses	provision for expected credit losses
Rent waivers			Rent deferrals2		Provision for expected credit losses
	Where tenant is in arrears FY20 $m	Where tenant not in arrears FY20 $m	FY20 $m	Total $m	FY20 $m	Total $m
FFO	Reduced FFO in the period it relates to3 ($7.4m)	No impact Nil	No impact Nil	($7.4m)	Reduced FFO ($6.8m)	($14.2m)
AFFO	Reduced AFFO in the period it relates to ($7.4m)	Reduced AFFO in the period it relates to4 ($11.8m)	No impact Nil	($19.2m)	Reduced AFFO ($6.8m)	($26.0m)
Statutory Profit5	Increased property expenses in the period it relates to ($7.4m)	No impact Nil	No impact Nil	($7.4m)	Increased Property Expenses ($6.8m)	($14.2m)
Estimate assumptions and rationale	– FY20 rent relief estimates are for the April to June 2020 period – Small and medium business customers • Assumed a level of rental assistance that is at least in line with the Code of Conduct • The proportion of wavier versus deferral was assessed based on level of impact from COVID-19 – Large companies • Assessed relief based on tenant industry and level of impact from COVID-19 • Rent relief generally provided in form of deferrals				– Estimated credit losses on debtors including deferrals and excluding estimated rent waivers for tenants in arrears – Risk of credit loss is based on a probability weighted assessment of risk of default by industry, size of tenant and specific knowledge of any recoverability risk

An immaterial number of agreements were executed at 30 June 2020.
Estimated rent waivers where a tenant is in arrears is classified within Provision for expected credit losses.
Estimated deferrals of $3.0 million are earned revenue with an associated receivable. A separate assessment of the recoverability of the rent receivable is credit losses. performed in accordance with the policy outlined in note 18(b) Working capital and any associated provision is included in the Provision for expected credit losses. 4. Estimated rent waivers where a tenant is not in arrears are classified within AFFO Capex. 5. On a look-through basis.

Dexus 2020 Annual Results Presentation

Financial results

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Reconciliation to statutory profit

Reference Item	30 June 2020 $m 30 June 2019 $m
Statutory AIFRS net profit after tax Investment property and inventory (Gains)/losses from sales of investment property Fair value gain on investment properties Financial instruments Fair value (gain)/loss on the mark-to-market of derivatives Incentives and rent straight-lining Amortisation of cash and fit out incentives Amortisation of lease fees Amortisation of rent-free incentives Rent straight-lining Tax Non-FFO tax expense Other unrealised or one-off items1 Other unrealised or one-off items	983.0 1,281.0 (0.1) (1.8) (612.4) (773.1) 2.5 (109.4) 59.0 45.2 14.6 14.9 74.3 68.5 (20.4) (11.8) 3.3 15.7 226.4 152.3
Funds From Operations (FFO)	730.2 681.5
Maintenance and leasing capex Maintenance capital expenditure Cash incentives and leasing costs paid Rent free incentives2	(59.1) (63.2) (41.9) (37.6) (78.7) (63.5)
Adjusted Funds From Operations (AFFO)	550.5 517.2
Distribution	550.3 529.0
AFFO Payout ratio	100.0% 98.7%3

FY20 other unrealised or one-off items includes $168.3 million of unrealised fair value losses on interest bearing liabilities, $5.8 million amortisation of intangible assets, $20.7 million coupon income, and rental guarantees received and other, $3 million of goodwill impairment, $2.6 million of write off of intangibles, $8.1 million one-off significant items, $1.1 million of transaction costs, $14.1 million of equity accounted investment impairments and $2.7 million fair value loss on other assets.
Includes rent waiver adjustment of $11.8 million for tenants not in arrears.
FY19 distribution payout ratio has been adjusted to exclude the $18.3 million of distributions paid on new securities through the Institutional Placement and Security Purchase Plan announced on 2 May 2019, which was fully entitled to the distribution for the six months ending 30 June 2019. The distribution payout ratio was 102.3% including this amount.

Dexus 2020 Annual Results Presentation

Financial results

Management operations profit

	Property	Funds	Development	Management
FY20 ($m)	Management	Management	Management	Operations
Revenue	78.5	73.6	15.7	167.8
Operating expenses	(57.4)	(26.6)	(12.3)	(96.3)
FY20 netprofit	21.1	47.0	3.4	71.5
FY20 margin	27%	64%	22%	43%
FY19 margin	25%	62%	(29%)1	39%

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100 Mount Street, North Sydney.
One Farrer Place, Sydney.
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Includes $3.5 million of bidding costs for development opportunity. 44 Dexus 2020 Annual Results Presentation

Financial results

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Cash flow reconciliation

	30 June 2020 $m 30 June 2019 $m
Cash flow from operating activities add back: payment for inventory acquisition and capex less: cost of sale of inventory less: tax on trading profits not yet paid add back: capitalised interest less: adjustments for equity accounted distributions add back: other working capital movements add back: transaction costs	729.9 493.1 87.1 54.4 (225.3) (47.4) (15.2) (14.8) 9.5 24.4 40.6 74.3 37.0 45.1 1.1 3.1
Adjusted cash flow from operating activities Rent free income Depreciation and amortisation (including deferred borrowing costs)	664.7 632.2 78.7 63.5 (13.2) (14.2)
FFO Less: payments from maintenance capex and incentives1	730.2 681.5 (179.7) (164.3)
AFFO Less:gross distribution	550.5 517.2 (550.3) (529.0)
Cash surplus/(deficit)	0.2 (11.8)
Add: distributionspaid on new securities2	- 18.3
Cash surplus/(deficit)adjusted for distributionspaid on new securities	0.2 6.5

Includes cash and fitout incentives, lease fees, rent-free incentives and rent relief adjustment of $11.8 million for tenants not in arrears. 2. Distributions paid on new securities issued through the Institutional Placement on 2 May 2019, which were fully entitled to the distribution for the six months ending 30 June 2019. 45 Dexus 2020 Annual Results Presentation

Financial results

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Interest reconciliation

	30 June 2020	30 June 2019
	$m	$m
Total statutory finance costs	163.4	151.9
Less: unrealised interest rate derivative and exchangeable note MTM gain/(loss)1	(27.6)	(32.9)
Less: finance costs attributable to investments accounted for using the equity method2	(4.3)	2.4
Less: AASB 16 interest expense and debt modification	(2.6)	(2.0)
Net finance costs for FFO3	128.9	119.4
Add: interest capitalised	18.7	29.2
Gross finance costs for cost of debt purpose	147.6	148.6

Unrealised interest rate derivative MTM loss of $24.6 million (FY19: $11.4 million loss), exchangeable note MTM gain of $0.9 million (FY19: $16.6 million loss) and amortisation of exchangeable notes of $3.9 million (FY19: $4.9 million).
Includes finance costs associated with properties held in investments accounted for using the equity method. 3. Excludes interest income of $1.5 million (FY19: $2.3 million).

46 Dexus 2020 Annual Results Presentation

Financial results

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Change in net tangible assets and revaluations

	$m	$ps
Opening net tangible assets1 (1 Jul 19)	11,494.9	10.48
Revaluation of real estate	612.4	0.56
Retained earnings2	180.0	0.16
Amortisation of tenant incentives3	(127.5)	(0.12)
Fair value and other movements4	(309.0)	(0.22)
Closing net tangible assets1 (30 Jun 20)	11,850.8	10.86

	Investment portfolio Valuation change $m Weighted average cap rate % of portfolio
	Dexus Office portfolio 490.6 4.97% 86 Dexus Industrial portfolio 111.4 5.66% 13 To tal Dexus portfolio5 612.4 5.05%

Net tangible assets exclude $73.2 million deferred tax liability relating to management rights.
Represents FY20 FFO less distributions.
Includes rent straight-lining.
Primarily includes fair value movements of derivatives and interest-bearing liabilities, deferred tax, gain from sale of investment properties, movement in reserves and other. 5. Includes healthcare property and leased assets revaluation gain of $10.4 million.

Dexus 2020 Annual Results Presentation

Financial results

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Direct property portfolio book value movements

		Office1	Industrial1	Dexus total1	Trading assets2
		$m	$m	$m	(inventory) $m
Opening direct property		13,192.5	2,337.2	15,529.7	457.6
Lease incentives	3	93.1	14.3	107.4	2.2
Maintenance capex		58.0	0.8	58.8	2.2
Acquisitions		272.9	71.0	343.9	-
Developments 4		367.3	133.9	501.2	48.7
Disposals 5		(190.5)	(421.5)	(612.0)	(173.6)
Revaluations 6		490.6	111.4	602.0	-
Amortisation		(130.1)	(16.5)	(146.6)	(1.3)
Rent straight lining		17.4	2.6	20.0	-
Closing balance at the end of the period		14,171.2	2,233.2	16,404.4	335.8

Includes Dexus’s share of equity accounted investments and excludes healthcare and leased assets.
Trading assets are included in Office, Industrial and Dexus total amounts. 3. Includes rent free incentives.
Includes capitalised interest.
At book value and includes internal transfers from investment property. 6. Excludes healthcare and leased assets.

Dexus 2020 Annual Results Presentation

Capital management FY20 position

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Debt maturity profile1 $m - 100 200 300 400 500 600 700 800 900 FY21 FY22 FY23 FY24 FY25 FY26 FY27 FY28 FY29 FY30 FY31 FY32 FY33 FY34 FY35 FY36 FY37 FY38 FY39 FY40 DCM CPA MTN Bank HWPF Bank	Key metrics 30 June 2020 30 June 2019
	Total debt2 $4,838m $4,067m Headroom (approximately)3 $1.6bn $1.0bn Gearing (look-through)4 24.3%5 24.0% Covenant gearing (covenant6 <55%) 25.4% 23.3% Interest cover (covenant6 >2.0x) 5.7x7 5.4x Priority debt (covenant6 <30%) 0% 0%

Includes $425 million Exchangeable Notes based on investor put date in FY24. 5. 2. Total debt does not include debt in equity accounted investments. 3. Undrawn facilities plus cash. 4. Adjusted for cash and debt in equity accounted investments.
Proforma gearing includes proceeds and payments for transactions post 30 June 2020 that are expected to settle before 30 September 2020 including the divestment of Finlay Crisp Centre, Canberra, 201 Elizabeth Street, Sydney and 45 Clarence Street, Sydney (subject to FIRB approval), the acquisition of Edward Street, Brisbane (Hermes), payment of Dexus’s share of deferred settlement amounts for 80 Collins Street, Melbourne, the industrial property acquisitions of 37-39 Wentworth Street, Greenacre and the Ford Facility at Merrifield Business Park, Mickleham. All other transactions post 30 June 2020 are excluded. Look-through gearing at 30 June 2020 was 26.3%. 6. As per public bond covenants. 7. Look-through interest cover is 5.4x.

Dexus 2020 Annual Results Presentation

Capital management

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Interest rate hedging profile

Hedge maturity profile

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Hedging profile 30 June 2020 30 June 2019
$m
4,000 4.0% Average amount of debt hedged [1] 78% 74%
3,500 3.5% Average amount of debt hedged excluding 62% 55%
caps
3,000 3.0%
Weighted average interest rate on 2.1% 2.7%
2,500 2.5% hedged debt [2]
Cost of debt [3] 3.4% 4.0%
2,000 2.0%
1,500 1.5% Weighted average maturity of hedges 6.4 years 5.6 years
1,000 1.0%
500 0.5%
- 0.0%
FY21 FY22 FY23 FY24 FY25
Interest Rate Caps Interest Rate Swaps
Exchangeable Notes Net fixed debt
Weighted Average Hedge Rate (excl margin)
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Average amount hedged for the period (including caps).
Including fixed rate debt (without credit margin).
Weighted average for the period, inclusive of fees and margins on a drawn basis.

50 Dexus 2020 Annual Results Presentation

Capital management Debt facilities[1]

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	Facility limit A$m	Drawn A$m	Maturity	Currency
Bilateral bank debt	300	136	FY22	A$
	400	136	FY23	A$
	350	100	FY24	A$
	550	100	FY25	A$
	375	99	FY26	A$
	225	0	FY27	A$
Commercial paper2 Medium term notes	100 160	100 160	FY23 FY23	A$ A$
	185	185	FY26	A$
	130	130	FY27	A$
	200 500	200 500	FY30 FY32	A$ A$
	30	30	FY39	A$
US senior notes (144A)3	305	305	FY21	US$
US senior notes (USPP)3
Series 1	291	291	Jul-23 - Jul-28	US$
Series 2	225	225	Feb-24 - Feb-27	US$
Series 3	286	286	Dec-24 - Dec-26	US$
Series 4 (A$)	100	100	Jun-28	A$
Series 5	503	503	Nov-29 - Nov-32	US$
Series 5 (A$)	150	150	Nov-29 - Nov-32	A$
Series 6 (A$)	75	75	Oct-38	A$
Exchangeable notes Sub total	425 5,865	425 4,236	FY244	A$
Dexus 2020 Annual Results	Presentation

	Facility limit	Drawn
	A$m	A$m
Sub total	5,865	4,236
Currency translation and fair value adjustments	648	648
Deferred borrowing costs	(20)	(20)
Exchangeable Notes adjustments	(26)	(26)
Total interest bearing liabilities	6,467	4,838
Bank guarantee utilised		(56)
Cash		32
Headroom including cash		1,605

Does not include debt facilities in equity accounted investments: $201.6 million (August 2020), $25.0 million (November 2022), $11.5 million (December 2022) and $42.3 million (February 2023).
Based on maturity date of commercial paper standby facility.
144A and USPP US$ amount shown at the cross-currency swap contract rate. 4. Based on investor put date in FY24.

Property portfolio

Office and industrial key metrics

Key metrics	Office Industrial
Amount of space leased1	88,467sqm2 181,472sqm
No. of leasing transactions	2072 95
Occupancy by income	96.5% 95.6%
Occupancy by area	96.6% 97.9%
Average incentives	17.1% 3 13.4% 4
No. of effective deals	71 41
Weighted Average Lease Expiry5 (WALE)	4.2 years 4.1 years
Like-for-like income growth	Face 1.0% Face 2.5%
	Effective 2.4%6 Effective (2.1)%7

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The Annex, 12 Creek Street, Brisbane. 5 Martin Place, Sydney.
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Including Heads of Agreement.
Excluding development leasing of 26,403sqm across 32 leasing transactions. 3. Gross basis excluding development leasing. 4. Net basis.
By income.
Excluding rent relief and provision for expected credit losses effective LFL growth was +4.7%. 7. Excluding one-off income in addition to rent relief and provision for expected credit losses effective LFL growth was +0.1%.

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Dunlop 380 Dohertys Road, Truganina.
Quarry Industrial Estate, Greystanes.
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Dexus 2020 Annual Results Presentation

Property portfolio

Office portfolio diversification

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Office by asset type Office by location
Prime Sydney
grade - WA 6% CBD/Fringe
office 54%
88% [1]
Premium QLD 13%
grade -
office 35%
$14.2bn $14.2bn
VIC 18%
Development
7%
NSW 63%
A grade -
B grade -office 5% office 53% SuburbanSydney
9%
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Prime grade buildings represent 94% of the office portfolio including stabilised assets only and excluding development-affected assets and land. 53 Dexus 2020 Annual Results Presentation

10 Eagle Street, Brisbane. Australia Square, 264 George Street, Sydney.

Property portfolio

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Office lease expiry profiles by region

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20% Sydney CBD 17.1% 18.6% Income Area
15% 13.9% 12.8% 13.6% 14.3% 14.2% 14.2%
10% 9.0% 8.0%
5% 3.8% 3.1%
0%
Available FY21 FY22 FY23 FY24 FY25
25% Sydney Suburban 21.8% Income Area
20% 18.6% 17.4%
15.6%
15%
10%5% 5.6% 6.8% 3.7% 3.3% 4.7% 4.5% 6.6% 4.2%
0%
Available FY21 FY22 FY23 FY24 FY25
Dexus Office [1] Value Cap rate Yield [2]
($m) (%) (%)
Sydney CBD 7,235 4.7% 4.7%
Sydney Suburban 1,236 5.3% 5.2%
Melbourne CBD 1,547 4.9% 5.0%
Brisbane CBD 1,683 5.2% 6.2%
Perth CBD 800 5.8% 6.4%
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Brisbane CBD Income Area
30% 26.4% 27.3%
20%
11.7% 12.7%
10% 9.6% 5.6% 6.1% 6.3% 8.2% 8.8%
3.3% 3.4%
0%
Available FY21 FY22 FY23 FY24 FY25
Melbourne CBD Income Area
30%
24.6%25.0%
20%
11.6% 13.9% 12.6%
10% 7.1% 7.3% 7.1% 6.8% 7.8%
1.3% 1.6%
0%
Available FY21 FY22 FY23 FY24 FY25
Perth CBD Income Area
20% 19.7% 18.7%
15%
10%
5.3% 4.5%
5% 3.0% 2.6% 1.6% 1.3% 1.6% 2.2% 1.5% 1.2%
0%
Available FY21 FY22 FY23 FY24 FY25
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Includes stabilised properties only. Excludes Canberra office properties.
Passing FFO yield based on annualised Property Funds From Operations for the month of July 2020.

54 Dexus 2020 Annual Results Presentation

Property portfolio

Office top 10 customers represent 18% of income

Diversity of office customers (by income)

Office top 10 customers

Office customers1 Wilson Parking	S&P rating Not rated	% of income2 3.7%	Financial and Insurance Services Other professional, Scientific and Technical Services (excluding Legal Services) Public Administration and Safety			15.5% 14.7% 12.6%
State of Victoria Commonwealth of Australia	AAA AAA	2.9% 2.5%	Legal services Rental, Hiring and Real Estate Services		8.2%	11.8%
Rio Tinto Deloitte Services	A Not rated	1.9% 1.5%	Transport, Postal and Warehousing Information Media and Telecommunications Mining	5.6% 4.9% 4.8%
Commonwealth Bank of Australia	AA-	1.3%	Accommodation and Food Services Insurance and Superannuation Funds	4.0% 3.9%
Worley John Holland	Not rated Not rated	1.1% 1.1%	Retail Trade Construction Electricity, Gas, Water and Waste Services	2.7% 2.7% 2.6%
Herbert Smith Freehills BDO Services	Not rated Not rated	1.0% 1.0%	Education and Training Health Care and Social Assistance Wholesale Trade Other	1.9% 1.6% 1.0% 1.4%
			Government and knowledge related industries

Total Dexus portfolio includes executed Heads of Agreement at 30 June 2020. 2. Annualised income is based on the sum of the passing Gross Rental and secured gross Rental (for signed leases and for signed Heads of Agreement).

Dexus 2020 Annual Results Presentation

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The Annex, 12 Creek Street, Brisbane
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Property portfolio
Industrial portfolio diversification
Industrial by asset type Industrial by location
Industrial NSW 53%
estate 43%
SA 1%
Land 9%
Data centre $2.2bn QLD 10% $2.2bn
4%
Distribution
centre 17% Business
park 27%
VIC 36%
Dexus 2020 Annual Results Presentation 47 Foundation Road, Truganina.
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Property portfolio Industrial portfolio diversification

56 Dexus 2020 Annual Results Presentation

Property portfolio

Industrial lease expiry profile[1]

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20%
16.6%
15% 14.2%
10.9%
9.6%
10%
6.0%
5% 4.4%
0%
Available FY21 FY22 FY23 FY24 FY25
FY21 Key expiries FY22 Key expiries FY23 Key expiries FY24 Key expiries
Axxess Corp Park (3.3%) Axxess Corp Park (3.7%) Axxess Corp Park 3 Brookhollow Ave (3.7%)
The Mill (1.1%) 12-18 Distribution Dr (2.0%) (3.3%) 1 Garigal Rd (1.1%)
Kings Park Ind Estate (1.1%) Kings Park Ind Estate (1.5%) 250 Forest Rd (3.1%) 2-4 Military Rd (1.0%)
The Mill (2.2%)
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By industrial income. 57 Dexus 2020 Annual Results Presentation

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7-9 Distribution Drive, Truganina.
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Property portfolio

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Industrial lease expiry profiles by region

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20% Sydney Income Area 35% Brisbane 30.4% Income Area
15% 11.1% 12.3% 14.6% 15.7% 10.8% 16.6% 14.1% 28%21% 18.7% 19.5% 15.8%
10% 8.7% 6.1% 6.3% 14% 11.5% 9.2%
5% 2.7% 2.4% 7% 0.4% 0.6% 0.0% 0.0% 0.3% 0.5%
0% 0%
Available FY21 FY22 FY23 FY24 FY25 Available FY21 FY22 FY23 FY24 FY25
30% Melbourne 27.8% Income Area 60% Adelaide 54.0% 51.3% Income Area
20.1% 37.5% 41.0%
20% 17.5% 40%
11.4%
10% 7.8% 2.1% 8.8% 5.4% 3.7% 4.3% 7.4% 7.5% 20% 1.3% 1.4% 0.0% 0.0% 7.2% 6.3% 0.0% 0.0%
0% 0%
Available FY21 FY22 FY23 FY24 FY25 Available FY21 FY22 FY23 FY24 FY25
Value Cap rate Yield [2]
Dexus Industrial [1] ($m) (%) (%)
Sydney 1,061 5.3% 5.3%
Melbourne 727 6.0% 6.0%
Brisbane 198 6.0% 6.1%
Adelaide 16 10.5% 9.6%
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Includes stabilised properties only.
Passing FFO yield based on annualised property Funds From Operations for the month of July 2020.

58 Dexus 2020 Annual Results Presentation

Property portfolio

Industrial top 10 customers represent 3.7% of income

Diversity of industrial customers (by income)

Industrial top 10 customers

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Industrial customers [1] % of income [2] Transport, Postal and Warehousing 26.0%
Autosports Group 0.6% Retail trade 21.0%
IBM Australia 0.5% Manufacturing 13.9%
Coles 0.5% Wholesale trade 13.5%
AWH Pty Ltd 0.4% Information Media andTelecommunications 6.5%
Reece 0.4% Construction 4.9%
Secon Freight Logistics 0.3% Health Care and Social Assistance 3.2%
Symbion Health 0.3% Professional, Scientific and TechnicalServices 3.2%
Financial and Insurance Services 2.3%
Fujitsu 0.3%
Administrative and Support Services 1.8%
ESTORE 0.2%
Other Services 1.4%
Simons National Carriers 0.2%
Rental, Hiring and Real Estate Services 1.3%
Public Administration and Safety 0.9%
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Total Dexus portfolio includes executed Heads of Agreement at 30 June 2020.
Annualised income is based on the sum of the passing Gross Rental and Secured gross Rental (for signed leases and for signed Heads of Agreement).

Dexus 2020 Annual Results Presentation

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2 Bellevue Circuit, Greystanes.
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Environmental, Social and Governance update

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Creating long-term value through managing risk and enhancing sustainability

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Established Board - Customer Net Promoter - Employee Net Promoter - Achieved over 1,000,000 square metres ESG Committee, Score +50 (FY19: +46), Score +61 (FY19: +40), of group office space rated to minimum supported by Group indicating strong indicating strong employee 5 star NABERS Energy and 4 star ESG Committee and customer satisfaction engagement NABERS water, exceeding targets set in working groups focused on modern slavery, climate resilience, energy - Assisted SMEs with rent relief consistent with Code of Conduct - Maintained Employer of Choice for Gender Equality citation - 2015Commenced renewable Energy Supply Agreement, supplying NSW office properties with renewable energy
procurement, and social impact - Expanded use of climate scenario - Contributed $1.5 billion Gross Value Added analysis to enhance Dexus’s resilience, to the Australian economy and supported launching Towards Climate Resilience 9,227 construction jobs - Delivered onsite solar installations at
- 100 Mount Street, North Sydney achieved a Willows Shopping Centre and Beenleigh 5 Star Green Star Design & As Built rating Marketplace
External recognition as an ESG global leader Dexus #1 out of Dexus Office Trust #1 Dexus named to 2019 Dexus rated A+ 252 real estate out of 240 listed CDP Climate A List across all required
60 Dexus 2020 Annual Results Presentation companies entities modules

Environmental metrics

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Office sustainability metrics

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Listed Office
NABERS Energy ratings
Office Energy and GHG emissions intensity 6 stars 5.5 stars Dexus office NABERS Energy
609.0 19,235sqm3% 317,073sqm42% portfolio average rating (star)
133.7 0 stars
2,377sqm<1% Jun 15 4.7
309.2 2.5 stars 5.0 star Jun 16 4.8
10,004sqm1% average Jun 17 4.8
64.9 3 stars 5 stars
49.2% energy intensity reduction 11,723sqm2% 259,106sqm35% Jun 18 4.9
Jun 19 5.0
51.5% emissions intensity reduction 4 stars
FY08 FY10 FY12 FY14 FY16 FY18 FY20 44,921sqm6% 4.5 stars Jun 20 5.0
82,962sqm
Office Water use intensity 4.5 stars 11% Listed Office Dexus office NABERS Water
855.4 96,598sqm13% NABERS Water ratings portfolio average rating(star)
5 stars
23,158sqm
3% Jun 15 3.8
568.0 2 stars 4 stars Jun 16 3.7
1,724sqm 374,194sqm
<1% 50% Jun 17 3.6
2.5 stars 3.7 star
46,274sqm6% average Jun 18 3.6
Jun 19 3.6
33.6% water intensity reduction
FY08 FY10 FY12 FY14 FY16 FY18 FY20 Jun 20 3.7
3 stars
93,952sqm
1. GHG = greenhouse gas. 13% 3.5 stars
109,137sqm
61 Dexus 2020 Annual Results Presentation 15%
Energy Intensity (MJ/sqm)
GHG emissions intensity (kg CO2-e/sqm)
Water use Intensity (L/sqm)
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Development

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Dexus completed developments – core hold

Pipeline		Building area1	Project cost2	Yield on cost3	Leased	Final	Third party
		sqm	$m	%	%	completion	partner
							interest
							%
Office	240 St Georges Terrace, Perth, WA	47,200	195	6.3%	96%	Sep 2019	-
	The Annex, 12 Creek Street, Brisbane, QLD	7,300	32	7.2%	24%	Mar 2020	50%
	80 Collins Street, Melbourne, VIC4	43,000	180	n/a	95%	Jul 20208	25%
Total office		97,500	407
Industrial	380 Dohertys Road, Truganina, VIC5	9,200	11	6.6%	100%	Sep 2019	-
	58 Foundation Road, Truganina, VIC5	8,200	11	6.2%	100%	Jun 2020	-
	7 Custom Place, Truganina, VIC5, 6	7,300	33	6.4%	100%	Jul 20209	-
Total industrial		24,700	55
City retail	321 Kent Street, Sydney, NSW7	4,800	16	5.9%	100%	Jul 2019	-
	44 Market Street, Sydney, NSW	1,500	21	6.0%	100%	Aug 2019	-
	175 Pitt Street, Sydney, NSW	5,200	33	6.4%	80%	Jan 2020	50%
	80 Collins Street, Melbourne, VIC (retail)4	4,900	35	n/a	85%	Jul 20208	25%
Total city retail		16,400	105
Total developments completed		138,600	567

At 100%.
Dexus share in development cost (including cost of land where purchased for development and excluding downtime and income earned through development).
Yield on cost calculation includes cost of land, downtime and income earned through development in the denominator.
The vendor will manage the development of the South Tower and Retail Podium. Development costs, including certain third-party claims associated with the development, will be funded by the vendor with Dexus’s contribution effectively limited to the agreed purchase price, subject to certain limitations on claims. Dexus is responsible for leasing from settlement of the acquisition on 2 May 2019. Refer to the 80 Collins Street acquisition announcement dated 2 May 2019 for further detail.
Dexus 100% owned at 30 June 2020. Entered into agreement to sell to the Dexus Australia Logistics Trust (DALT) on 30 July 2020.

Council changed address from 12A Felstead Drive, Truganina VIC.

Excluding external party share of project.

Interim Completion Date, representing the handover of the South Tower and Retail podium from QIC to Dexus and DWPF.

Project completion achieved 3 July 2020.

Dexus 2020 Annual Results Presentation

Development

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Dexus committed developments and fund-throughs – core hold

Pipeline		Building	Project	Est. cost to	Yield on	Leased	Completion	Third party
		area1	cost est.2	completion	cost3	%	due	partner
		sqm	$m	$m	%			interest
								%
Office	180 Flinders Street, Melbourne, VIC	20,300	162	39	6-7%	72%	Mid 2020	-
Total office		20,300	162	39
Industrial	9 Custom Place, Truganina, VIC4, 5	45,400	52	17	6-7%	100%	Mid 2020	-
	Lot 15, 11-167 Palm Springs, Ravenhall, VIC	72,000	22	13	6-7%	51%	Early 2021	75%
	54 Ferndell Street, South Granville, NSW	57,100	77	29	6-7%	45%	Early 2021	49%
	Lot 20 & 21 11-167 Palm Springs, Ravenhall, VIC	43,100	15	15	6-7%	60%	Mid 2021	75%
	425-479 Freeman Road, Richlands, QLD	54,800	43	18	6-7%	22%	Early 2022	49%
Total industrial		272,400	209	92
City retail/other	80 Collins Street, Melbourne, VIC (hotel)6	7,700	28	3	n/a	100%	Mid 2020	25%
	MLC Centre, 19 Martin Place, Sydney, NSW	11,000	94	43	5-6%	67%	Late 2021	50%
Total city retail/other		18,700	122	46
Total developments committed		311,400	493	177

At 100%.
Dexus share in development cost (including cost of land where purchased for development and excludes downtime and income earned through development).
Target yield on cost calculation includes cost of land, downtime and income earned through development in the denominator.
Council changed address from 12B & 12C Felstead Drive, Truganina VIC.
Dexus 100% owned at 30 June 2020. Entered into agreement to sell to the Dexus Australia Logistics Trust (DALT) on 30 July 2020. 6. The vendor will manage the development of the Hotel. Development costs, including certain third-party claims associated with the development, will be funded by the vendor with Dexus’s contribution effectively limited to the agreed purchase price, subject to certain limitations on claims.

Dexus 2020 Annual Results Presentation

Development

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Dexus uncommitted developments – core hold

Pipeline		Building area1,5	Project cost	Est. yield on est.	Third party
		sqm	est.2,5	project cost3	partner
			$m	%	interest %
Office	140 George Street, Parramatta, NSW	43,600	c.200	6-7%	50%
	Waterfront Brisbane, QLD	126,000	c.1,100	5-6%	50%
	Central Place Sydney, NSW4	141,000	c.550	5-6%	25%
	Pitt and Bridge Precinct, Sydney, NSW	105,400	c.1,400	5-6%	50%
	60 Collins Street, Melbourne, VIC	27,100	c.600	5-6%	-
	10 Eagle Street, Brisbane, QLD	4,900	c.25	6-7%	50%
	150 George Street, Parramatta, NSW	21,600	c.45	6-7%	50%
Total office		469,600	c.3,920
Industrial	20 Distribution Drive, Truganina, VIC	21,000	c.30		-
	11-167 Palm Springs, Ravenhall, VIC	286,400	c.100		75%
Total industrial		307,400	c.130	6-7%
Total uncommitted		777,000	c.4,050

At 100%.
Dexus share in development cost (including cost of land where purchased for development and excludes downtime and income earned through development). Pitt
& Bridge Precinct only excludes land for 56 Pitt Street and Central Place Sydney only excludes land for 14 Lee Street, Sydney.
Target yield on cost calculation includes cost of land, downtime and income earned through development in the denominator.
Excluding external party share of project. External JV partner owns 50% of this project.
Amounts have been rounded.

Dexus 2020 Annual Results Presentation

Transactions

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Dexus and funds management

Dexus acquisitions Purchase price $m Interest Settlement 52 Collins Street, Melbourne, VIC $70.0 100% 30 Jul 19 Homemaker, 19 Stoddart Street, Prospect, NSW $64.3 100% 30 Sep 19 Other sundry properties $14.0 n/a Aug 19 - Nov 19 Rialto Towers, 525 Collins Street, Melbourne, VIC $64.4 10% 4 Jun 20 155, 159, 171 Edward Street, Brisbane, QLD (Hermes) $87.0 100% 3 Aug 20 22 Business Park Drive, Ravenhall, VIC $9.0 100% Jan 21 37-39 Wentworth Street, Greenacre, NSW1 $51.0 51% Jul 20 - Feb 21 Ford Facility, Merrifield Business Park, Mickleham, VIC2 $37.5 51% Aug 20 – Aug 21 3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW3 $177.0 50% Aug18 -Jul 22 Dexus divestments Sale price $m Interest Settlement NSHH, 12 Frederick Street, St Leonards, NSW4 $52.7 100% 16 Sep 19 Garema Court, 140-180 City Walk, Canberra, ACT $71.5 100% 28 Feb 20 Dexus Australian Logistics portfolio (DALT) (T:2) $366.1 24% 1 Apr 20 Finlay Crisp Centre, Canberra, ACT $31.0 50% Jul 20 201 Elizabeth Street, Sydney, NSW5 $315.0 50% 12 Nov 19 & Aug 20 45 Clarence Street, Sydney, NSW6 $530.0 100% Sep 20 Truganina, VIC and Lakes Business Park South, Botany, NSW7 $269.4 100% Oct 20 – mid-2021	Funds Management acquisitions Purchase price $m Interest Settlement
	NSHH, 12 Frederick Street, St Leonards, NSW4 $52.7 100% 16 Sep 19 Other sundry properties $11.2 n/a Aug 19 - Nov 19 Dexus Australian Logistics portfolio (DALT) (T:2) $366.1 24% 1 Apr 20 Rialto Towers, 525 Collins Street, Melbourne, VIC $579.6 90% 4 Jun 20 37-39 Wentworth Street, Greenacre, NSW1 $49.0 49% Jul 20 – Feb 21 Ford Facility, Merrifield Business Park, Mickleham, VIC2 $36.0 49% Aug 20 – Aug 21 Truganina, VIC and Lakes Business Park South, Botany, NSW7 $269.4 100% Oct 20 – mid-2021 3 Spring, 58 Pitt and 60 Pitt Streets, Sydney, NSW3 $177.0 50% Aug 18 - Jul 22 College Junction, 695 Sandgate Road, Clayfield, QLD $36.5 100% Nov 20

	Funds Management divestments Sale price $m Interest Settlement
	Finlay Crisp Centre, Canberra, ACT $31.0 50% Jul 20
	1. 75% of the purchase price was paid in July 2020 with the remaining 25% payable at a later stage. 2. The purchase price reflects the initial purchase of the land and the estimated development costs. 3. Of the total $177.0 million purchase price, $86.5 million was settled in September 2019. 4. This reflects the 100% purchase price amount for the sale of NSHH (consisting of land and WIP) to HWPF. A development management agreement has also been entered into, whereby Dexus provides development management services until practical completion. 5. Dexus exchanged contracts to sell 25% interest in 201 Elizabeth Street, Sydney for $157.5 million, which was settled in November 2019. The option for the remaining 25% interest for $157.5 million has been exercised, with settlement in August 2020. 6. Subject to FIRB approval. 7. Dexus has exchanged contracts to sell the first tranche of the industrial assets in October 2020 and has entered into put and call option arrangements to sell the second tranche in mid-2021.

Dexus 2020 Annual Results Presentation

Trading

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Proven ability to execute trading strategies to generate enhanced returns

Trading profits track record since FY12

Examples of completed and recently settled trades

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19% [3] 13%
unlevered unlevered
16 IRR IRR
Trading properties sold and settled 201 Elizabeth Street, SydneyOffice Settled 12 Nov 2019 $69m trading profits [1,2] 50 Carrington Street, SydneyOffice Sold in 2014$12m trading profits [1]
26% 56%
29%+ unlevered IRR unlevered IRR
Average unlevered project IRR Sold in 2015 Sold in 2017
40 Market Street, Melbourne $19m trading profits [1] 79-99 St Hilliers Road, Auburn $26m trading profits [1]
Office Industrial
50% 32%
$369m unlevered IRR unlevered IRR
Trading profits realised [1] Rothchild Avenue, Rosebery5-13 Rosebery & 22-55 Sold in 2015$93m trading profits [1] 32 Flinders Street, Melbourne Sold in 2018$49m trading profits [1]
Industrial Carpark
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Trading profit pre-tax.
Including forecast trading profits.
The unlevered IRR represents the total return realised from the disposal of Dexus’s interest in 201 Elizabeth Street and has been measured from the date of being classified as a trading asset.

66 Dexus 2020 Annual Results Presentation

Funds management

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Development pipeline

	$5.2 billion
	Funds management development pipeline
$550 million	$4.0 billion		$650 million
Total committed projects	Total uncommitted projects	Concept projects
Project cost on uncommitted projects in Funds Management business
Uncommitted projects	FY21	FY22	FY23+
Office - 7 properties		$3.7bn
Industrial - 1 property		$0.3bn
Project cost on uncommitted Funds Managementprojects		$4.0bn

67 Dexus 2020 Annual Results Presentation

Drivers of industrial demand

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Take-up in COVID-19 period supported by food and e-commerce sectors

Take-up of industrial space was above average in the last quarter of FY20
Online sales increased by approximately 50% in the year to May 2020
Demand has been driven by online retailing as well as defensive players including food and beverage retailers and logistics firms

Solid growth in online sales

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Index Food (all channels) Household (all channels)
Online channel Total retail sales (all channels)
200
180
160
140
120
100
80
Jun-19 Sep-19 Dec-19 Mar-20 Jun-20
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Take-up strengthened in the 4[th] Quarter of 2020 (key markets)

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‘000sqm
800
700
600
500
400
300
200
100
0
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
----- End of picture text -----

Source: ABS, JLL Research. Key markets include Outer West Sydney, South West Sydney, West Melbourne, South East Melbourne, South Brisbane , Australian Trade Coast and East Perth.

68 Dexus 2020 Annual Results Presentation

Market outlook

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Inner city office locations benefit from strong long-term employment growth

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NSW employment growth by region
Index
State Greater City Inner City
150
145
140
3.8%pa
135
130
125
1.5%pa
120
115 1.3%pa
110
105
100
Jun-15 Jun-16 Jun-17 Jun-18 Jun-19 Jun-20
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CBDs benefit from a virtuous cycle of employment and new infrastructure investment (e.g. light rail, metro rail)
Trend to inner-city living and a ‘live/work/play’ ethos
Businesses value CBD locations for attracting and retaining talented staff
CBDs foster ideas, collaboration and productivity

Source: ABS, Dexus Research.

69 Dexus 2020 Annual Results Presentation

Market outlook

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Sydney CBD supply landscape for major office projects

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'000sqm
200
Available
150
Pre-committed
100
Withdrawal
50
Mooted
0
-50
-100
-150
FY21 FY22 FY23 FY24 FY25 FY26 Mooted
Source: Dexus Research, Company reports, Agent reports.
70 Dexus 2020 Annual Results Presentation
Withdrawals (FY21) 388 George Street 320 Pitt Street 275 George Street Sub Station No. 164 Korean Air House Henry Davis York Building Wynyard Place Charles Plaza Building Energy Australia Building 426-430 Kent Street 55 Market Street Withdrawals (FY22) Withdrawals (FY23) Quay Quarter (AMP) Poly Centre Salesforce Tower (Lend Lease) David Jones 327-329 George Street 4-6 York Street Sydney Cove AMP Building Withdrawals (FY25) Martin Place Station Precinct 256 Pitt (Metro Station North) Central Barangaroo Tech Central - Atlassian Tech Central (Lee Street) 55 Pitt Street Darling Park Tower 4 One Shelley Street Withdrawals (Mooted) 338 Pitt Street International House EVT Lend Lease - O'Connell St Site 117 Clarence Street 4-6 Bligh Street 32-36 York Street 175 Liverpool Street 187-191 Thomas Street 312 - 318 George Street (Merivale) 33 Bligh Street 477 Pitt Street Pitt & Bridge Street Precinct
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Market outlook

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Melbourne CBD supply landscape for major office projects

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'000sqm
Available
80
Pre-committed
60
Withdrawal
40
Mooted
20
0
-20
-40
-60
-80
FY21 FY22 FY23 FY24 Mooted
Source: Dexus Research, Company reports, Agent reports.
71 Dexus 2020 Annual Results Presentation
Withdrawals (FY21) 80 Collins Street 550 Bourke Street 405 Bourke Street 180-189 Flinders Street 100 Queen Street Withdrawals (FY22) Victoria University Precinct 1000 La Trobe Street Wesley Place Stage 2 NAB House 555 Collins Street Stage 1 435 Bourke Street Withdrawals (Mooted) Treasury Square Stage 3 Treasury Square Stage 2 Treasury Square Stage 1 The Royal Mint Centre The Quarter New Quay- Q4 The Quarter New Quay- Q3 The Quarter New Quay- Q2 The Quarter New Quay- Q1 Southgate Office Tower OSD South Melbourne Quarter Tower Melbourne Central Fmr World Trade Centre Digital Drive Bennetts Lane 90 Collins Street 85-91 Spring Steet 77 Waterfront Way 7-13 Alfred Place 700 Collins Street 600 Lonsdale Street 60 Collins Street 580 Little Bourke Street 555 Collins St (Stage 2) 440 Docklands Drive 388 William St 32 Flinders Street 256-260 King 25 Digital Drive 14-22 Russell 12 Riverside Quay (Esso)
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Market outlook

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Sydney CBD office

Pandemic influencing business confidence and leasing activity
JobKeeper wage subsidy scheme has helped businesses retain employees
Prime office vacancy at 7.0%, below the 10-year average of 8.0%

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‘000sqm Sydney CBD office market
250 15%
200
150 10%
100
50
5%
-
-50
-100 0%
-150
-200 -5%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Net Absorption Net Supply Vacancy (RHS)
Source: JLL Research
1. Includes stabilised properties only.
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Sydney CBD office market	At	30 Jun 2020
Total net lettable area	5.02 million sqm
Prime vacancy average		7.0%
Dexus Sydney CBD exposure1
Net lettable area		613,742sqm
Number of properties		18
% of portfolio by value		54.0%
Occupancy by area		96.3%
Occupancy by income		95.2%
Weighted average lease expiry		4.0 years

72 Dexus 2020 Annual Results Presentation

Market outlook

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Melbourne CBD office

Economic uncertainty and lockdown affecting tenant demand
Leasing activity subdued in the last quarter of FY20
Prime office vacancy at 7.5%

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‘000sqm Melbourne CBD office market
200 20%
150 15%
100 10%
50 5%
- 0%
-50 -5%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Net Absorption Net Supply Vacancy (RHS)
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	Melbourne CBD office market	At 30 Jun 2020
	Total net lettable area	4.95 million sqm
	Prime vacancy average	7.5%
	Dexus Melbourne CBD exposure1 Net lettable area	332,599sqm
	Number of properties	8
	% of portfolio by value	18.2%
	Occupancy by area	98.4%
	Occupancy by income	98.7%
	Weighted average lease expiry	4.1 years

Source: JLL Research actual and Dexus Research forecast.

Includes stabilised properties only.

73 Dexus 2020 Annual Results Presentation

Market outlook Brisbane CBD office

Queensland’s successful flattening of COVID-19 curve is a positive sign for growth
Prime office vacancy at 11.0% is lower than total vacancy (12.8%)
Positive prime net absorption of 26,748 square metres in FY20

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‘000sqm Brisbane CBD office market
150 18%
100 12%
50 6%
- 0%
-50 -6%
-100 -12%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Net Absorption Net Supply Vacancy (RHS)
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Brisbane CBD office market	At	30 Jun 2020
Total net lettable area	2.26 million sqm
Prime vacancy average		11.0%
Dexus Brisbane CBD exposure1
Net lettable area		257,616sqm
Number of properties		6
% of portfolio by value		12.6%
Occupancy by area		94.5%
Occupancy by income		93.6%
Weighted average lease expiry		3.7 years

Source: JLL Research actual and Dexus Research forecast. 1. Includes stabilised properties only.

74 Dexus 2020 Annual Results Presentation

Market outlook

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Perth CBD office

Lack of community spread of COVID-19 has helped confidence
Prime office vacancy at 15.3%, below total vacancy of 20.1%
Low levels of supply in the short to medium-term

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‘000sqm Perth CBD office market
300 30%
250 25%
200 20%
150 15%
100 10%
50 5%
- 0%
-50 -5%
-100 -10%
FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
Net Absorption Net Supply Vacancy (RHS)
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	Perth CBD office market	At 30 Jun 2020
	Total net lettable area	1.81 million sqm
	Prime vacancy average	15.3%
	Dexus Perth CBD exposure1
	Net lettable area	121,879sqm
	Number of properties	3
	% of portfolio by value	6.0%
	Occupancy by area	97.4%
	Occupancy by income	97.0%
	Weighted average lease expiry	6.4 years

Source: JLL Research actual and Dexus Research forecast.

Includes stabilised properties only.

Dexus 2020 Annual Results Presentation

Exchange rate and securities used in statutory accounts

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		30 Jun 2020	31 Dec 2019	30 Jun 2019
Closing rates for Statement of Financial Position	USD	0.6863	0.7006	0.7013
Average rates for Statement of Comprehensive Income	USD	0.6714	0.6846	0.7156

Post consolidation equivalent amounts		12 mths to	6 mths to	12 mths to
		30 Jun 2020	31 Dec 2019	30 Jun 2019
Average weighted number of securities1		1,095,096,969	1,096,815,516	1,028,577,220
Closing number of securities		1,091,202,163	1,096,401,459	1,096,857,665

Used to calculate underlying FFO, FFO and AFFO per security. 76 Dexus 2020 Annual Results Presentation

Glossary

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Distribution payout policy:	Policy is to distribute in line with free cash flow.
Funds From Operations (FFO):	FFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders calculated
	in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark to market
	impacts, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent
	adjustments, deferred tax expense/benefit, certain transaction costs, one-off significant items, amortisation of intangible assets, movements in
	right of use assets and lease liabilities, rental guarantees and coupon income.
Adjusted FFO (AFFO):	AFFO is in line with Property Council of Australia definition and comprises net profit/loss after tax attributable to stapled security holders calculated
	in accordance with Australian Accounting Standards and adjusted for: property revaluations, impairments, derivative and FX mark-to-market
	impacts, fair value movements of interest bearing liabilities, amortisation of tenant incentives, gain/loss on sale of certain assets, straight line rent
	adjustments, deferred tax expense/benefit, certain transaction costs, one-off significant items, amortisation of intangible assets, movements in
	right of use assets and lease liabilities, rental guarantees and coupon income, less maintenance capital expenditure and lease incentives.
Gearing:	Gearing is represented by Interest Bearing Liabilities (excluding deferred borrowing costs and including the currency gains and losses of cross
	currency swaps) less cash divided by Total Tangible Assets (excluding derivatives and deferred tax assets) less cash. Covenant gearing is the same
	definition but not adjusted for cash.
Gearing (look through):	Represents Gearing defined above adjusted to include debt in equity accounted investments.
Portfolio Value:	Unless otherwise stated, portfolio value is represented by investment properties, inventories and investments accounted for using the equity
	method, and excludes cash and other assets.
Weighted Average Lease Expiry (WALE): A measure in years of the average term to expiry of in-place rent. Includes vacancies.

77 Dexus 2020 Annual Results Presentation

Important information

This presentation is issued by Dexus Funds Management Limited (DXFM) in its capacity as responsible entity of Dexus (ASX:DXS). It is not an offer of securities for subscription or sale and is not financial product advice.
Information in this presentation including, without limitation, any forward-looking statements or opinions (the Information) may be subject to change without notice. To the extent permitted by law, DXFM, Dexus and their officers, employees and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the Information and disclaim all responsibility and liability for it (including, without limitation, liability for negligence). Actual results may differ materially from those predicted or implied by any forward-looking statements for a range of reasons outside the control of the relevant parties.
The information contained in this presentation should not be considered to be comprehensive or to comprise all the information which a Dexus security holder or potential investor may require in order to determine whether to deal in Dexus stapled securities. This presentation does not take into account the financial situation, investment objectives and particular needs of any particular person.
The repayment and performance of an investment in Dexus is not guaranteed by DXFM, any of its related bodies corporate or any other person or organisation.
This investment is subject to investment risk, including possible delays in repayment and loss of income and principal invested.

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100 Mount Street, North Sydney.
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78 Dexus 2020 Annual Results Presentation

AI assistant

DEXUS — Annual Report 2020

64807_rns_2020-08-18_080a98b7-d92a-4095-9cb8-412cd126f77e.pdf

Dexus (ASX: DXS)

ASX release

19 August 2020

2020 Annual results presentation and property synopsis

For further information please contact:

Investors

Media

About Dexus

Annual Results Presentation 2020

Agenda

Resilient result

Strategic progress

Commitment to ESG demonstrated through:

Financial results

Key earnings drivers and valuations

Property portfolio valuations

FY20 financial results

AFFO and distribution per security consistent with prior year

Dexus 2020 Annual Results Presentation

COVID-19 impacts

Strong rent collections for FY20

Rent collections and rent relief

COVID-19 impact on FY20 distribution per security

Strong financial position

Enhanced liquidity, sourcing more than $1.8 billion of debt funding

- Maintained low gearing

Diversified sources of debt

COVID-19 response

Assisting in returning Australian businesses safely to their workplaces

Office portfolio metrics

Portfolio snapshot

7.5%

Office portfolio expiry profile

Dexus portfolio occupancy consistently above market

66%

Office market outlook

Melbourne

Funds Management

Platform of specialist capability underpinned by scale benefits

Dexus Wholesale Property Fund

Healthcare Wholesale Property Fund

Accelerating opportunities to expand platform Focused across property sectors

Industrial portfolio metrics

Strength in logistics and online drive result

Portfolio snapshot

Occupancy

Leasing by area

A busy year of development completions

$10.6 billion group development pipeline Minimal current commitments

CBD office development

Core industrial development

Capital allocation and future funding options 95.5% of the portfolio AUM is income producing

Capital allocation at 30 June 2020

Development pipeline

Optimise property portfolio composition

Focus on selective asset recycling, leveraging track record to maximise value

Trading business

FY21 and FY22 trading profits de-risked

Focus on activating 12 Frederick Street, St Leonards Stage 2 development and replenishing the pipeline

Well positioned for the recovery

Offices will remain relevant

Office markets are driven by employment growth

Summary

Immediate priorities

Appendices

Dexus today

Embedded value

Delivering sustained value

The role of the office

Building culture, collaboration, innovation and more

1. THE POWER OF PLACE

FY20 rent relief treatment

FY20 rent waivers $19 million impact on AFFO

Financial results

Reconciliation to statutory profit

Dexus 2020 Annual Results Presentation

Financial results

DEXUS Annual Report 2020